7 Apr 2015
Gold outperforms S&P so far in 2015
FXStreet (Mumbai) - Gold prices shot almost 1.5% higher on Monday before edging lower to USD 1210/Oz levels in the European session today. Still the yellow metal has outperformed the US stocks.
The S&P index has gained 1.29% this year, while Gold is up 2.54%. The last time we saw Gold beat S&P was in 2011, when the yellow metal gained 16%, while the stock markets remained flat. That was the year when the S&P has downgraded the US credit rating.
With still 8 months to go, there is plenty of room for stocks to outperform Gold or for Gold to extend its lead over stocks. However, it is worth noting that Gold has been able to outdo stocks despite the speculation of a June rate hike in the first quarter.
Meanwhile, stock markets in the US, though sensitive to rate hike, were supported by repeated comments from the Fed officials that a rate hike would be the result of economic strength.
The S&P index has gained 1.29% this year, while Gold is up 2.54%. The last time we saw Gold beat S&P was in 2011, when the yellow metal gained 16%, while the stock markets remained flat. That was the year when the S&P has downgraded the US credit rating.
With still 8 months to go, there is plenty of room for stocks to outperform Gold or for Gold to extend its lead over stocks. However, it is worth noting that Gold has been able to outdo stocks despite the speculation of a June rate hike in the first quarter.
Meanwhile, stock markets in the US, though sensitive to rate hike, were supported by repeated comments from the Fed officials that a rate hike would be the result of economic strength.